Earnings Guidance

Earnings guidance is a forecast provided by a company’s management about its expected future financial performance, including revenue, earnings, and other key metrics. Guidance helps set investor expectations for upcoming quarters or fiscal years and is often delivered during earnings calls or in press releases. Companies provide guidance to offer transparency about their business outlook and to help analysts adjust their earnings estimates accordingly. Earnings guidance can influence stock prices significantly, as positive guidance may lead to increased investor confidence, while negative guidance can cause stock prices to decline.

Example

A company might issue earnings guidance stating that it expects to earn $2.00 per share in the next quarter, guiding investors on future expectations.